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Economics · 2026 · 6 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income6 marksApplylong answer
CBSE 2026 · Region 3 · Set 1 · Q16
(a) Calculate the values of Operating Surplus and Gross Domestic Product at Market Price (GDP_MP ) from the following data: S. No. Particulars Amount…
Calculate the values of Operating Surplus and Gross Domestic Product at Market Price (GDP$\displaystyle _{MP}$) from the following data :
| S. No. | Particulars | Amount (in ₹ crore) |
| (i) | Rent | $\displaystyle 120$ |
| (ii) | Profits | $\displaystyle 200$ |
| (iii) | Domestic Income | $\displaystyle 720$ |
| (iv) | Mixed Income | $\displaystyle 70$ |
| (v) | Wages and Salaries | $\displaystyle 300$ |
| (vi) | Indirect Taxes | $\displaystyle 150$ |
| (vii) | Subsidies | $\displaystyle 50$ |
| (viii) | Consumption of fixed capital | $\displaystyle 200$ |
| (ix) | Interest | $\displaystyle 30$ |
| (x) | Dividend | $\displaystyle 120$ |
| (xi) | Net factor income from abroad | $\displaystyle 20$ |
(i)
Distinguish between Real Gross Domestic Product and Nominal Gross Domestic Product using a numerical example.
(ii)
Define the concept of ‘Externalities’.
Marking-scheme solution
Operating Surplus = (i) + (ii) + (ix)
= $\displaystyle 120$ + $\displaystyle 200$ + $\displaystyle 30$
= ₹ $\displaystyle 350$ crore
Gross Domestic Product at Market Price (GDP$\displaystyle _{MP}$) = (iii) + (viii) + {(vi) − (vii)}
= $\displaystyle 720$ + $\displaystyle 200$ + ($\displaystyle 150$ – $\displaystyle 50$)
= ₹ $\displaystyle 1,020$ crore
(i)
Real Gross Domestic Product (GDP) refers to the market value of final goods and services produced in the domestic territory of an economy during a given period of time, measured at constant prices.
Whereas;
Nominal Gross Domestic Product (GDP) refers to the market value of final goods and services produced in the domestic territory of an economy during a given period of time, measured at current year prices.
For example, considering base year be $\displaystyle 2022$ and current year be 2025.
| Year | Price (in ₹) | Output (in units) | Real GDP ($\displaystyle P_0Q_1$) | Nominal GDP ($\displaystyle P_1Q_1$) |
| $\displaystyle 2022$ | $\displaystyle 10$ | $\displaystyle 100$ | $\displaystyle 1,000$ | $\displaystyle 1,000$ |
| $\displaystyle 2025$ | $\displaystyle 15$ | $\displaystyle 100$ | $\displaystyle 1,000$ | $\displaystyle 1,500$ |
(ii)
Externalities refer to benefits/harms which are caused by one entity to another without being paid/ penalised for it.
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CBSE Class 12 Economics past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.